Daily Archives: May 14, 2014

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Corporate rental biz long term as homeownership slips, says Boca gathering of Wall Street landlords

Corporate rental biz long term as homeownership slips, says Boca gathering of Wall Street landlords

The new single-family home rental business run by Wall Street-types is a long-term venture that executives at a conference this week in Boca Raton said will only grow as homeownership rates continue to fall.

The second annual Single Family Aggregation, REO to Rental Forum is a three day conference for the relatively new phenomenon of corporatizing home rentals.

About 800 people are attending the conference, organized by the New York-based Information Management Network.

“We always try to follow where the hot money is going,” said Steve Glenner, senior vice president for programs at IMN. “Right now, there isn’t a lot of organization in this industry yet because it’s so new.

 

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Three Banks Meet Standards of Mortgage Settlement

Three Banks Meet Standards of Mortgage Settlement

Unbelievable…

Three of the largest U.S. mortgage servicers have rectified failures to comply with parts of a $25 billion landmark national mortgage settlement, the watchdog overseeing the process said Wednesday.

Bank of America Corp., J.P. Morgan Chase & Co. and Citigroup Inc. passed all tests reviewing their compliance with the National Mortgage Settlement during the third and fourth quarters of last year, said the monitor for the settlement, Joseph A. Smith.

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Exclusive: Regulators scrutinize financial risk-modeling firms

Exclusive: Regulators scrutinize financial risk-modeling firms

U.S. government officials recently proposed creating scorecards to measure the potential threat posed by firms that offer risk models, amid concerns that large financial institutions may be too dependent on the same products, according to documents reviewed by Reuters.

The review marks another area of scrutiny for the Financial Stability Oversight Council, a group of regulators that has already imposed tougher rules for companies including insurers, banks and market utilities such as derivatives clearinghouses. The council is also generally responsible for identifying emerging risks to the larger financial system.

In a closed-door meeting on March 25, FSOC staffers delivered a presentation about a niche group of third-party firms that sell asset valuation, investment advice and risk measurements to pension funds, asset managers, insurance agencies and banks, according to the documents.

The documents lay out the government’s concern that financial firms may rely too heavily on the same outside risk models and valuations, and that any flaws in these services could result in a wide misunderstanding of the true risk of firms’ investments and other assets.

A Treasury spokeswoman told Reuters that the proposed scorecard approach is consistent with the council’s mandate to look at issues across the financial system. She added that no decisions have been made on the approach, that it is not designed for any particular company or industry, and should not be read into.

Among the service providers mentioned were BlackRock Solutions, a unit of giant fund manager BlackRock, Bloomberg LP’s Bloomberg Asset and Investment Manager (AIM), MSCI’s RiskMetrics and BarraOne, Citigroup’s Yield Book, Barclays’ POINT, BNY Mellon’s HedgeMark, FactSet, IBM’s Algorithmics and Charles River’s Charles River Investment Management Solution.

Though the documents viewed by Reuters list 10 examples of third-party service providers that help institutional investors evaluate risk, the presentation highlights one company – BlackRock Solutions. The documents say that BlackRock offers what are known as “end-to-end” services, meaning it helps clients throughout the entire investment process.

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Wells Fargo Settlement

Wells Fargo Settlement

SAN FRANCISCO – Wells Fargo Bank can pay $14.7 million to settle claims that it withheld commissions from branch sales managers and home-mortgage consultants, a federal judge ruled.

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William Black: How to rob a bank (from the inside, that is)

William Black: How to rob a bank (from the inside, that is)

William Black is a former bank regulator who’s seen firsthand how banking systems can be used to commit fraud — and how “liar’s loans” and other tricky tactics led to the 2008 US banking crisis that threatened the international economy. In this engaging talk, Black, now an academic, reveals the best way to rob a bank — from the inside.